In line with a recent report ‘published‘ by Bloomberg, Lenders within the cryptocurrency ecosystem are reportedly weathering the recent crypto bearish market higher than others.
In line with Bloomberg, creditors that provide their services within the cryptocurrency phase are “finding sturdy demand from borrowers who don’t want to sell their digital coins at depressed costs, additionally as from big investors desirous to borrow coins for short selling.”
Bloomberg reports that revenue of the crypto loaning company BlockFi has matured multiple times since mid of 2018, after which Michael Novogratz’s company Galaxy Digital Ventures invested around $52.5 Mln in the firm.
The company lends fiat currency to purchasers that deposit cryptocurrencies. BlockFi’s chief executive officer namely Zac Prince, stated that “it’s a low-risk type of loaning,” after declaring that the firm “never had a loss of principal.”
The CEO ‘Michael Moro’, of Genesis Capital, a firm that offers its users to borrow crypto in exchange for bucks, reportedly stated in an interview that “the bearish market has definitely helped, or at least has fueled the expansion.”
As reported earlier in Oct., Genesis processed $550 Mln throughout its initial six months of activity. Recently, Moro reportedly added that Genesis has issued $700 Mln in loans and has around $140 Mln in loans outstanding with an avg. time period of six weeks.
While other firms within the crypto ecosystem have been considering layoffs, Genesis is currently reportedly aiming to double its employees, and expanding further into Asia. While explaining further, Moro in an interview with Bloomberg stated:
“We’ve been profitable from day one. We’ve definitely tried that there’s market demand, that there’s product fit and that’s it’s time to speculate even more in this facet of the business.”
Following the crypto market crash earlier in the month of Nov., decentralised social media platform Steemit had to fire-off over 70% of its employees and start structural reorganization. The downfall in markets resulted in a decrease in a decree currency returns from the company’s automated ‘STEEM’ token sales.
Even major cryptocurrency mining firm Bitmain and major crypto exchange Huobi have additionally ‘reportedly‘ confirmed plans to fire-off their employees as “crypto winter” continues.